Marketwise, Inc. · NASDAQ:MKTW
Marketwise — Beacon Street Group — SPAC Merger (March 2021)
33 slides from Marketwise's SPAC merger presentation, Mar 2, 2021
Slide 1: Management Presentation
Exhibit 99.2 MANAGEMENT PRESENTATIONExhibit 99.2 MANAGEMENT PRESENTATION
Slide 2: Important Information
IMPORTANT INFORMATION About this Presentation This investor presentation (this “Presentation”) is for informational purposes only to assist interested parties in making their own evaluation with respect to a proposed business combination (the “Business Combination”) between Ascendant Digital Acquisi
Slide 3: Important Information
IMPORTANT INFORMATION This Presentation also includes certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”) including, but not limited to, Adjusted EBITDA, Adjusted Free Cash Flow and Billings and certain ratios and other metrics derived theref
Slide 4: Ascendant was looking for a great acquisition in the attention economy
ASCENDANT WAS LOOKING FOR A GREAT ACQUISITION, IN THE ATTENTION ECONOMY Significant and growing “attention $191B TAM with significant tailwinds, ripe for disruption 1 ✓ economy” TAM Market leading tech platform with scalable, high-value Scalable, digitally delivered IP 2 ✓ content, data & analytics
Slide 5: Introducing Beacon Street Group
c= _ a a NTRODUCING BEACON STREET GROUP ye.
Slide 6: Founded with a mission to level the playing field for self-directed investors
Founded with a mission to level the playing field for self-directed investors Today we are a Leading Subscription Services Platform serving millions of self-directed investors A diverse portfolio of operating brands serving as a trusted source for financial research, education and actionable ideas 6
Slide 7: Beacon Street Group at a Glance
BEACON STREET GROUP AT A GLANCE A market leader in delivering high-value and actionable 10M+ 850K+ $759 financial research, easy-to- digital paid digital industry leading 2 platform subscribers at 2020E ARPU use technology, as well as 1 members at 12/31/20 financial education and a 12/31/20 social c
Slide 8: Business Overview
oe ® s 5 BUSINESS OVERVIEW eae
Slide 9: Key Drivers of Our Success
KEY DRIVERS OF OUR SUCCESS POWERFUL CONTENT CUSTOMER FOCUS SCALABLE MODEL DATA / TECHNOLOGY PLATFORM • Compelling content fosters • Customer centricity through • Industry-leading ROI on new • Real-time campaign relationships between readers every stage of a subscriber’s customer acquisition feedback
Slide 10: Financial Wellness Solutions Have a Huge TAM
FINANCIAL WELLNESS SOLUTIONS HAVE A HUGE TAM $191B Global Total Addressable Market 63M 4 2020 US Self-directed Investors Financial 1 Information , $64B 19% 3 Asset Managers , 2017-2019 CAGR for Online Revenue $111B 5 from Global Self-directed Investors Investment 2 Research , $16B 1. As per BMO rese
Slide 11: Personal Investing Is Changing in Favor of BSG
PERSONAL INVESTING IS CHANGING IN …the markets are no longer FAVOR OF BSG reserved for institutional investors or HNWI. The goal of AGING POPULATION GROWING THE PIE 1 • 17% of U.S. population is 65+• 72% of millennials identify as self- democratizing the financial 3 directed investors (~$22T of • 10
Slide 12: Premium Subscription Content, Software and Tools
PREMIUM SUBSCRIPTION CONTENT, SOFTWARE AND TOOLS ACTIONABLE IDEAS SOFTWARE & TOOLS Forever Portfolio Buy These 20 Stocks Today and Hold Them Forever! 12PREMIUM SUBSCRIPTION CONTENT, SOFTWARE AND TOOLS ACTIONABLE IDEAS SOFTWARE & TOOLS Forever Portfolio Buy These 20 Stocks Today and Hold Them Forever
Slide 13: Building Relationships and Helping Subscribers
BUILDING RELATIONSHIPS AND HELPING SUBSCRIBERS “…you folks have become my “You guys talk about ‘life changing teachers and a true resource… results’… I am actually taking pride educating me on how to invest for in managing our investments. That the long term. WHAT A GIFT!” is a big life change. ” -
Slide 14: Proven, Agile Platform for Launching New Products Quickly with Low Risk
PROVEN, AGILE PLATFORM FOR 160+ LAUNCHING NEW PRODUCTS QUICKLY 130+ WITH LOW RISK 90+ Detect new demand and investment DETECT trends in the financial marketplace through observation, research and analysis <50 Identify a financial expert that has a ANALYZE personal passion for a specific area of grow
Slide 15: Diverse Research Portfolio Across Different Asset Classes
DIVERSE RESEARCH PORTFOLIO ACROSS DIFFERENT ASSET CLASSES 2018 – 2020E AVERAGE REVENUE MIX # OF CUMULATIVE SELECTED 1 1 SUBSCRIBERS LIFETIME SPEND EXAMPLES • Newswire Free • Investor Hour 9.5M General market commentary, current • The Weekly Pulse events - Insightful and educational • The Daily Cut •
Slide 16: Best-in-Class Business Model Tailored for High Value Subscribers
BEST-IN-CLASS BUSINESS MODEL TAILORED FOR HIGH VALUE SUBSCRIBERS CUMULATIVE FREE-TO-PAID CUMULATIVE HIGH-VALUE CUMULATIVE ULTRA CONVERSION RATE CONVERSION RATE CONVERSION RATE 2 3 4 6% 37% 31% TOTAL HIGH VALUE TOTAL ULTRA HIGH FREE TOTAL PAID SUBSCRIBERS VALUE SUBSCRIBERS SUBSCRIBERS SUBSCRIBERS (To
Slide 17: Financial Highlights
FINANCIAL HIGHLIGHTS $549M 77% $759 >5x 1 2 2020E 2020E Billings 2020E ARPU LTV/CAC Ratio growth Billings INDUSTRY-LEADING UNIT TRACK RECORD OF SCALE ECONOMICS GROWTH 97% 25% 99.8% 2018-2020E 2020E Adjusted 2020E Cash Flow 4 3 Conversion Subscription Billings EBITDA Margin PREMIER CASH FLOW RECURRIN
Slide 18: Superior Unit Economics
SUPERIOR UNIT ECONOMICS – 2020… “….with an LTV/CAC ratio of 3 or Avg. Customer Lifetime Billings ~$2,700 higher, investing an incremental High Variable Margin dollar in acquiring new customers has 1 LTV/CAC Ratio >5x a greater expected return than retaining that dollar as profit…” 90 Days 7-9 Months
Slide 19: Subscribers Spending More Initially and Increasing Spend Over Time
… WITH SUBSCRIBERS SPENDING MORE INITIALLY AND INCREASING THAT SPEND OVER TIME 2020 Cohort 2019 Cohort 2018 Cohort 2017 Cohort 2016 Cohort 2015 Cohort Year 1 Year 2 Year 3 Year 4 Year 5 CUMULATIVE SPEND BY COHORT OVER TIME 19… WITH SUBSCRIBERS SPENDING MORE INITIALLY AND INCREASING THAT SPEND OVER T
Slide 20: Vision & Growth Strategy
VISION & GROWTH STRATEGY 20VISION & GROWTH STRATEGY 20
Slide 21: Strategic Initiatives Are Driving and Accelerating Growth
STRATEGIC INITIATIVES ARE DRIVING AND ACCELERATING GROWTH KEY INITIATIVES (PAST 3 YEARS) 22 5 11 ,00 0,00 0 10.4 • Strategic acquisitions (6 operating subsidiaries) 8.9 9,000 ,000 • Broadened product offerings, including adding 27+ 17 5 7.5 editors & 110+ publications and built or acquired $158 soft
Slide 22: Our Vision to Become the De-Facto Financial Wellness Solutions Platform
OUR VISION TO BECOME THE DE-FACTO FINANCIAL WELLNESS SOLUTIONS PLATFORM FOR SELF-DIRECTED INVESTORS Grow / Optimize Build/Buy Invest in & Deepen Invest in Establish Invest in Brand Expand Marketing & Addt’l Content, Community Technology, Data Partnerships Marketing Internationally & Analytics & M&A
Slide 23: Track Record of Efficient and Highly Accretive Capital Allocation
… WITH A TRACK RECORD OF EFFICIENT AND HIGHLY ACCRETIVE CAPITAL ALLOCATION ORIGINAL SALES 2020E SALES YEAR FOCUS AREA BUILD OR BUY ($ MILLIONS) ($ MILLIONS) Transaction 1 2010 Macro Build -- $120 Transaction 2 2013 Risk Allocation Buy $1 $30 Transaction 3 2014 Macro Buy $5 $110 Transaction 4 2015 Co
Slide 24: Forecasted Key Performance Indicators
FORECASTED KEY PERFORMANCE INDICATORS 1 PAID SUBSCRIBERS (IN THOUSANDS) ARPU As of Jan. 31, 2021 $847 1,067 924k, 71% YoY Growth 947 $759 857 $747 553 526 $599 $478 2018 2019 2020 2021P 2022P 2018 2019 2020E 2021P 2022P 1.Based on trailing four quarter net billings /average number of trailing four q
Slide 25: Highly Attractive Long-Term Growth at Scale
HIGHLY ATTRACTIVE LONG-TERM GROWTH AT SCALE 1 REVENUE ($ IN MILLIONS) BILLINGS ($ IN MILLIONS) $871.4 $651.2 $692.5 $484.2 $548.9 $377.1 $272.2 $310.1 $238.4 $280.5 2018 2019 2020E 2021P 2022P 2018 2019 2020E 2021P 2022P 2 3 ADJUSTED EBITDA ($ IN MILLIONS) CASH FLOW CONVERSION 28% 26% 25% 29% 33% Ma
Slide 26: Long-Term Financial Objectives
LONG-TERM FINANCIAL OBJECTIVES KEY GROWTH DRIVERS KEY PROFITABILITY DRIVERS • Paid marketing spend• Paid marketing spend • New products/markets• Conversion/upsells • M&A• ROIs SUSTAINED TARGET RULE OF 50 FINANCIAL PROFILE 26LONG-TERM FINANCIAL OBJECTIVES KEY GROWTH DRIVERS KEY PROFITABILITY DRIVERS
Slide 27: Investment Highlights
INVESTMENT HIGHLIGHTS $191B TAM with significant tailwinds, ripe for disruption ✓ Market leading tech platform with scalable high-value and proprietary content, data & analytics ✓ ✓ 10M+ self-directed investors, growing 78% from 2018 to 2020 ✓ 12 primary customer facing brands offering 160+ products
Slide 28: BSG vs. Comps: Best in Class with Significant Upside Potential
BSG VS. COMPS: BEST IN CLASS WITH SIGNIFICANT UPSIDE POTENTIAL 1 1 2021P ADJ. EBITDA MARGIN (%) 2020E-2022P ADJ. EBITDA CAGR (%) 2020E-2022P GAAP REVENUE CAGR (%) 31.4% 43.7% 28.9% 27.7% 31.1% 21.6% 21.5% 10.0% 8.5% BSG Consumer / SMB Tech Digital Subscription BSG Consumer / SMB Tech Digital Subscri
Slide 29: Illustrative Sources & Uses
ILLUSTRATIVE SOURCES & USES ($M) TRANSACTION SOURCES USES SUMMARY ACND Cash Held in Trust $414 Cash to Balance Sheet $150 PIPE Raise Proceeds 150 Transaction Fees & Expenses 40 1 Sellers’ Equity Rollover 2,537 Cash to Sellers 374 • ACND has agreed to combine with BSG Sellers’ Equity Rollover 2,537 i
Slide 30: Appendix
APPENDIX 30APPENDIX 30
Slide 31: Historical Key Performance Indicators
HISTORICAL KEY PERFORMANCE INDICATORS FREE SUBSCRIBERS PAID SUBSCRIBERS 1 ARPU (IN THOUSANDS) (IN THOUSANDS) $759 857 9,530 $599 $478 553 526 5,027 2,741 2018 2019 2020 2018 2019 2020 2018 2019 2020E 1.Based on trailing four quarter net billings /average number of trailing four quarter paid subscrib
Slide 32: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS ($ in 000’s) Q1 2018 Q2 2018 Q3 2018 Q4 2018 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020E 2020E GAAP Revenues 57,651 58,006 61,675 61,118 238,449 61,449 67,814 72,292 70,668 272,223 78,999 86,264 101,371 110,466 377,100 Change in Deferred Revenu
Slide 33: GAAP Income Statement
GAAP INCOME STATEMENT Note: 2020 financials are based on BSG management estimates, subject to completion of the 2020 audit 1. Within our expenses historically are stock-based compensation expenses related to the Class B Units. Because Beacon Street Group, LLC’s current operating agreement includes p